6% VAT for demolition-reconstruction: An opportunity for the digital transition of the construction sector

Introduction

Did you know that from 1 July 2025, a new 6% VAT rate is now permanent for demolition-reconstruction projects of dwellings (surface ≤ 175 m², used as a primary residence or rented for ≥ 15 years)? This change, established by the omnibus law of 29 July 2025, represents an exceptional opportunity for the construction sector. To fully benefit from it, a well-managed digital transition using tools like Hit-Online becomes essential.

The omnibus law published in the Belgian Official Gazette on 29 July 2025 confirms the permanent reduced VAT rate of 6% for certain demolition-reconstruction operations carried out by professionals. This measure targets the delivery of a dwelling to an individual for personal use or for rental of at least 15 years, with a maximum habitable surface of 175 m².

This advancement is based on the government agreement of 18 July 2025 and is supported by an administrative circular published on 29 July 2025, which details the practical arrangements and clarifies the application conditions.

The legal framework aims to encourage the sustainable renovation of Belgium’s housing stock, reduce CO₂ emissions from old buildings, and support a construction sector under pressure from technical, administrative and financial challenges.

It is also worth noting that the installation of fossil-fuel boilers (gas, oil) in the context of these projects now incurs the standard VAT rate of 21%, in order to encourage a shift to more ecological systems.

Why is digitalisation crucial in this context?

The construction sector is historically complex: coordinating numerous trades, managing supply chains, meeting deadlines and complying with tax regulations – all while constantly interacting with clients and authorities.

The 2025 VAT reform adds an extra layer of requirements, with strict rules to follow or risk losing access to the reduced rate.

In this context, data centralisation, optimised project management, and automation via a cloud ERP become essential to reduce errors, improve responsiveness, and ensure compliance.

Hit-Online, Ficos’ cloud ERP, offers a complete solution, accessible from anywhere, and adaptable to your needs. It centralises every stage of the site: quotations, planning, cost tracking, invoicing, real-time key indicators, and more. This platform supports your digital transition with ease.

Concrete numerical example (6% VAT vs 21% VAT)

Imagine a demolition-reconstruction project for a 150 m² dwelling, total cost excl. VAT: €300,000.

  • With 6% VAT: 300,000 × 0.06 = €18,000 VAT → total incl. VAT: €318,000
  • With 21% VAT: 300,000 × 0.21 = €63,000 VAT → total incl. VAT: €363,000
  • Potential saving: €45,000

A significant gain you can measure and track directly in Hit-Online, notably via the quotation calculation, cost tracking, and project management modules.

Checklist: Conditions to benefit from the reduced 6% VAT rate

  1. Demolition plus reconstruction by a professional.
  2. Delivery to a natural person for primary use (or rental ≥ 15 years).
  3. Habitable surface ≤ 175 m².
  4. Legal mention in the deed / form 111/3 via MyMinfin (available from October 2025).
  5. No installation of fossil-fuel boilers (otherwise VAT at 21%).

Pending the release of form 111/3, the following mention must appear in sales deeds:
“Application of the 6% VAT rate for the demolition and reconstruction of a dwelling in accordance with heading XXXVII, § 3, second paragraph, 1°, a), b) or c) of table A of the annex to Royal Decree No. 20 of 20.07.1970 on VAT, as inserted into article 53 of the omnibus law (Parl. Doc. No. 56 0909/001)”

How does Hit-Online support you in this framework?

With Hit-Online, you benefit from a 100% cloud-based ERP designed for the construction sector, offering:

  • Centralisation of data in one place, accessible from anywhere.
  • Integrated project management from quotation to invoicing.
  • Smooth digitalisation in digital transition mode, without a local server.
  • A modular, intuitive and scalable interface.

This platform enables you to meet the new VAT obligations, optimise your margins, manage your projects efficiently, and offer better visibility to your clients.

Conclusion

The 18 July 2025 reform establishes a stable fiscal framework conducive to modernising the construction sector. To take full advantage, adopting an ERP solution like Hit-Online is strategic: you gain in efficiency, transparency, and control over your margins.

Want to automate VAT tracking, easily plan your projects, and ensure data centralisation? Discover Hit-Online, the cloud ERP solution tailored to the specific needs of the construction sector: Discover Hit-Online or request a free demo.

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